26 June 2012 16:33 [Source: ICIS news]
HOUSTON (ICIS)--A US butadiene (BD) producer has nominated a 17 cent/lb ($375/tonne, €300/tonne) drop for July, a reduction that puts its contracts at 90 cents/lb next month, market sources said on Tuesday.
The nomination represents a 16% reduction from June, when that supplier settled its contracts at $1.07/lb.
It also undercut proposed reductions by two other producers, which nominated July drops of 9 and 12 cents/lb in recent days.
A fourth US producer is expected to step out with its initiative in the next few days.
US BD contracts normally settle at the end of the month for the following month.
The drop in July will be the third in as many months.
US BD prices rose by 58% between January and April after four consecutive monthly increases, but prices fell by 7 cents/lb in May and slumped by 40 cents/lb in June.
BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include Ashland, Invista, LANXESS, Michelin and Negromex.
($1 = €0.80)
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